Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Opening Bell: Stocks Fall, Yields Tumble As U.S.-China Tensions Flare Up

By (Pinchas Cohen/ OverviewNov 20, 2019 07:27
Opening Bell: Stocks Fall, Yields Tumble As U.S.-China Tensions Flare Up
By (Pinchas Cohen/   |  Nov 20, 2019 07:27
Saved. See Saved Items.
This article has already been saved in your Saved Items

  • U.S. futures, European stocks markedly in the red as China rebukes U.S. interference in Hong Kong turmoil
  • Gold, yen and dollar all climb on risk off; yields tumble
  • Australian shares take a hit from allegations of severe legal breaches against Westpac

Key Events

Futures on the S&P 500, Dow and NASDAQ 100 joined global stocks in a decline this morning after China rebuked a unanimous U.S. Senate legislation supporting Hong Kong protestors, which further distanced an already elusive trade deal. Safe-haven assets all gained ground on renewed risk off, with Treasurys advancing alongside the dollar, the yen and gold.

A standoff on the question of tariffs timing—with the U.S. tying any tariff rollback to a phase-one agreement, and China wanting tariffs to be removed from the outset—became a lot more complicated after U.S. lawmakers intervened in what the Chinese government consider internal problems. U.S. Vice President Mike Pence said on Tuesday it would be tough for the U.S. to seal a deal if the demonstrations in Hong Kong are met with violence.

Moreover, a data miss on U.S. core retail sales indicated that a continuing economic expansion is far from being a foregone conclusion. Japanese figures this morning showing a tumble in exports also underlined the global hit from the trade dispute.

Meanwhile, the release later today of minutes from the last FOMC meeting may provide fresh insight into what the Federal Reserve makes of the current macro signals.

Europe's STOXX 600 slid with oil producers and banks shares.

In the earlier Asian session, Australia’s S&P/ASX 200 (-1.35%) tumbled after Westpac (ASX:WBC) was accused of severely breaching anti money-laundering and terrorism financing laws. Given the country's heightened sensitivity to the U.S.-China trade spat—China being Australia's largest two-way trade partner—new threats from U.S. President Donald Tump to further hike levies on Chinese goods further soured the mood in Sydney.

Hong Kong’s Hang Seng (-0.75%) also slid lower as the city's political turmoil kept monopolizing news headlines.

Global Financial Affairs

NASDAQ Composite Daily Chart
NASDAQ Composite Daily Chart

On Tuesday, the S&P 500 and the Dow closed lower after disappointing retail numbers, giving up fresh intraday records. Only the NASDAQ Composite managed to hold onto gains to post a new record close.

UST 10-Year Daily Chart
UST 10-Year Daily Chart

The yield on 10-year Treasurys fell for the third straight day to a three-week low today, slipping below the rising channel since the Oct. 6 low. Rates are now flirting with the 50 and 100 DMAs, heading back to the uptrend line since the Sept. 3 bottom. Both the MACD and the RSI are favoring that view.

XAU/USD Daily Chart
XAU/USD Daily Chart

In safe-haven markets, risk-off concerns offset asset-price considerations: the dollar strengthened despite a rise in the Japanese yen, and gold advanced even against a more expensive dollar.

Up Ahead

  • Corporate earnings coming up this week feature consumer brands including: Target (NYSE:TGT), Macy’s (NYSE:M) and Foot Locker (NYSE:FL).

  • On the other side of the Atlantic, European Central Bank speakers include President Christine Lagarde, Bundesbank chief Jens Weidmann, along with Yves Mersch, Luis de Guindos, Pablo Hernandez de Cos and Philip Lane.
  • Chinese officials announce prime loan rates, a benchmark for borrowing costs, on Wednesday.
  • Market Moves



    • The Dollar Index rose 0.1%.
    • The euro fell 0.1% to $1.1067.
    • The British pound dipped 0.1%.
    • The Japanese yen appreciated 0.1% to 108.42 per dollar.


    • The yield on 10-year Treasurys slid five basis points to 1.73%, the lowest in almost three weeks.
    • The yield on 2-year Treasurys fell two basis points to 1.57%.
    • Germany’s 10-year yield gave up four basis points to -0.38%.
    • Britain’s 10-year yield declined five basis points to 0.686%.
    • Japan’s 10-year yield lost three basis points to -0.106%.


    • West Texas Intermediate crude fell 0.1% to $55.13 a barrel.
    • Gold strengthened 0.4% to $1,477.82 an ounce.
    Opening Bell: Stocks Fall, Yields Tumble As U.S.-China Tensions Flare Up

    Related Articles

    FactSet Research Systems Inc
    Podcast : Financial Market Preview - Wednesday 18-May By FactSet Research Systems Inc - May 18, 2022

    US equity futures are indicating a lower open as of 05:00 ET. European stocks are mostly softer, following mostly firmer Asian markets. Fed members support 50bp rate hikes in the...

    Opening Bell: Stocks Fall, Yields Tumble As U.S.-China Tensions Flare Up

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

    • Enrich the conversation
    • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
    • Be respectful. Even negative opinions can be framed positively and diplomatically.
    •  Use standard writing style. Include punctuation and upper and lower cases.
    • NOTE: Spam and/or promotional messages and links within a comment will be removed
    • Avoid profanity, slander or personal attacks directed at an author or another user.
    • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

    Write your thoughts here
    Are you sure you want to delete this chart?
    Post also to:
    Replace the attached chart with a new chart ?
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
    Comments (1)
    Max Rochester
    Max Rochester Nov 20, 2019 8:07
    Saved. See Saved Items.
    This comment has already been saved in your Saved Items
    Blah blah blah, same old fear mongering articles, When stocks drop its tune to buy
    Are you sure you want to delete this chart?
    Replace the attached chart with a new chart ?
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Our Apps
    DOWNLOAD APPApp store
    © 2007-2022 Fusion Media Limited. All Rights Reserved.
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    • Sign up for FREE and get:
    • Real-Time Alerts
    • Advanced Portfolio Features
    • Personalized Charts
    • Fully-Synced App
    Continue with Google
    Sign up with Email